Staged Auto Accidents Are Still Big Business

CarCrashDespite the rapid increase in fraud due to identity theft and other schemes, staged auto accidents are still big business. Staged accident rings are typically highly organized – often just as organized as a legitimate business would be! They are usually controlled by one or more individuals and tend to be closely associated with certain law offices and/or medical clinics. It’s not uncommon to see family members, friends, co-workers and neighbors working side-by-side to commit this fraud. Newer and/or commercial vehicles are often targeted since they tend to be insured. These schemes result in higher insurance premiums for all of us.

What can you do?

If you suspect someone of committing fraud through a staged accident scheme, report it anonymously to NICB one of these three ways:

  • Complete and submit the form available online on the NICB Website. Your contact information is not required.
  • You can also call the NICB Hotline at 800.TEL.NICB (800.835.6422), staffed Monday through Friday from 7 a.m. to 8 p.m. Central Time.
  • Cell phone users can text the keyword “FRAUD” and their tip to TIP411 (847411). Plus, iPhone or iPad users can download the NICB Fraud Tips app to make it easy to quickly send a tip and get a response.

To learn more about NICB, visit www.NICB.org.

Car Crashes Caught on Camera

CarCrash1Thousands of insurance claims are made every day in this country for auto accidents. They add up to some $125 billion dollars in payments by insurers. With that many claims there’s also a significant amount of fraud. That’s why it’s important to be able to sort out fact from fiction.

Roger Morris has the story of how one company is putting on crash demonstrations for insurance industry claims experts. This type of experience helps to give them a firsthand look at what happens in a real accident as opposed to a staged accident.